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Measurement in Marketing Research

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Measurement in Marketing Research

  1. 1. Chapter 8Measurement 1
  2. 2. What is to be measured?• There is more than one way to measure a particular concept. – For example, salesperson’s success can be measured in dollar or unit sales volume or share of accounts lost.• Process of precisely assigning scores or numbers to attributes of people or objects. – Precision is the goal. 2
  3. 3. Operational definitions• A concept is a generalised idea about a class of objects, attributes, occurrences, or processes.• An operational definition gives meaning to a concept by specifying the activities or operations necessary to measure it.• A conceptual definition is a verbal explanation of the meaning of a concept. – What it is and what it is not? 3
  4. 4. Operational definitions 4
  5. 5. Measurement and Scaling cont.• Measurement – assigning numbers to certain characteristics of objects according to certain pre-specified rules• Scaling – creating a continuum upon which objects are located
  6. 6. Types of scales• A scale is any series of items that are arranged progressively according to value or magnitude, into which an item can be placed according to its quantification.• Four types of scale: – nominal – ordinal – interval – ratio. 6
  7. 7. Types of scales• Nominal: numbers or letters assigned to objects serve as labels for identification or classification. – Ronaldinho wears #10 for Brazil. – The number 7 on a horse’s colours.• Ordinal: arranges objects or alternatives according to their magnitude in an ordered relationship. – A horse finishing first in a race. 7
  8. 8. Types of scales• Interval: arranges objects according to their magnitudes and distinguishes this ordered arrangement in units of equal intervals. – Winning horse is two lengths ahead of the second–placed horse.• Ratio: absolute rather than relative quantities and an absolute zero where there is an absence of a given attribute. – Horse #7 is twice as heavy as horse #5. – 40 to 1 long shot pays $80. 8
  9. 9. Types of scales 9
  10. 10. Scale Characteristics• Assignment – Identify each object in a set• Order – Relative magnitude of each scale point• Distance – Difference between each descriptor• Origin – Having a true zero point
  11. 11. Properties of Scale Measurements Description Order Distance OriginNominal XOrdinal X XInterval X X XRatio X X X X
  12. 12. Nominal• Numbers identify and classify objects• Mutually exclusive categories Male……..1 Female…..2• Attitude scales: dichotomous• Used for counting purposes• Statistics: frequency/percentage distribution and the mode
  13. 13. Ordinal• Ranking system• Indicates relative position, not magnitude• Attitude scales: comparative, rank order, paired comparison• Indicate your most preferred subject (as 1) and so on • Marketing Research 4 • International Marketing 3 • Introduction to Marketing 1 • Statistics for Marketing 5 • Consumer Behaviour 2• Statistics: Frequencies, mode, median, percentiles
  14. 14. Interval• Numerically equal distances on the scale represent equal values in the characteristic being measured• Attitude scales: Likert, Stapel, semantic-differential• Differences can be compared To what extent do you involve your children in family decision making?Not at all Extremely involved 1 2 3 4 5 6 7 8 9 10• Possesses order and distance, not magnitude• Statistics: mean and standard deviation, hypothesis testing
  15. 15. Ratio• Same properties as interval scaled data with the advantage that it possesses a natural or absolute origin (zero point)• Identify, rank and compare intervals• Statistics: all those as interval plus coefficient of variation
  16. 16. Mathematical and statistical analysis of scales• Type of scale used will determine the form of statistical analysis. 16
  17. 17. Index measures• An attribute is a single characteristic or fundamental feature of an object, person, situation or issue.• Index or composite measures are multi–item instruments for measuring a single concept with several attributes. – For example, index of social class based on residence, occupation, and education.• One method for increasing accuracy. 17
  18. 18. Three criteria for good measurement• Reliability – The degree to which measures are free from random error and therefore yield consistent results.• Validity – The ability of a scale to measure what was intended to be measured.• Sensitivity – The ability to accurately measure variability in stimuli or responses. 18
  19. 19. Reliability• Applies to a measure when similar results are obtained over time and across situations. – For example, Tailor measuring with a tape measure obtains a true value of length repeatedly.• Two dimensions: repeatability and internal consistency• Test–retest method used to determine repeatability by administering the same scale at two separate points in time to test for stability. 19
  20. 20. Reliability• Split–half method used to determine internal consistency by checking the results of one– half of a set of scaled items against the results from the other half.• Equivalent–form method measures the correlation between alternative instruments, designed to be as equivalent as possible, administered to same group of subjects. 20
  21. 21. Validity• To measure what we intend to measure. – For example, a hard–working student who understands statistics does poorly in a test that measures ability to do arithmetic and memorise formulas instead.• Three approaches to establishing validity: – Face or content validity – Criterion validity – Construct validity. 21
  22. 22. Establishing validity• Face or content validity refers to a professional agreement that a scale’s content logically appears to accurately reflect what was intended to be measured.• Criterion validity refers to the ability of a measure to correlate with other standard measures of the same construct or established criterion. 22
  23. 23. Establishing validity• Construct validity refers to the ability of a measure to provide empirical evidence consistent with a theory–based concept. 23
  24. 24. Reliability versus validity 24
  25. 25. Attitudes defined• Attitude is an enduring disposition to consistently respond in a given manner to various aspects of the world.• Attitude is a hypothetical construct that is not directly observable but is measurable through indirect indicators.• Measuring attitudes is important because changing consumers’ attitudes is a major marketing goal. 25
  26. 26. Definitions• Construct – to describe or explain some aspect of nature (tends to be theoretical) e.g., attitude towards…• Dimension – Components of the construct e.g., cognitive, affective, conative• Item – The statement in a questionnaire that attempts to measure the construct e.g., I will quit smoking this year.
  27. 27. Attitude Measurement• Majority of questions in marketing research are designed to measure attitudes• Mental states used by individuals to structure the way they perceive and respond to their environment. Attitudes include: – cognitive or knowledge component – affective or liking component – intention or action component
  28. 28. The attitude–measuring process• Obtaining verbal statements from respondents generally requires that respondents perform a task such as ranking, rating, sorting, or making choices. – Ranking: rank order a small number of objects on the basis of preference. – Rating: estimate the magnitude of a characteristic. – Sorting: arrange objects into piles or classifications. 28
  29. 29. Attitude rating scales• Rating scales designed to enable respondents to report the intensity of their attitudes. – Simple attitude scales – Category scales – Likert scale. • Allow respondents to rate how strongly they agree or disagree with a statement. – Semantic differential • 7–point rating scales that use bipolar adjectives to anchor both ends of each scale. 29
  30. 30. The Likert scale 30
  31. 31. Example: Identify the components of attitude for the following attitude statements Malaysia as a travel destination• The weather in Malaysia is too humid.• There are lots of sights to see in Malaysia.• Malaysian people are warm and friendly.• I will definitely visit Malaysia in the next year.• I love Malaysian cuisine.• I enjoy shopping in Malaysia.• Malaysia is culturally different to Australia.
  32. 32. Attitude Rating Scale: Single-item Scales• Only have one item to measure a construct• Itemised-category scales - limited number of response categories How satisfied are you with your last purchase of Nike runners? ⃞ Very satisfied ⃞ Quite satisfied ⃞ Somewhat satisfied ⃞ Not at all satisfied
  33. 33. Attitude Rating Scale: Single-item Scales cont.• Comparative – Compares one object, concept or person against another – Between 3 – 9 response alternatives are generally best – Odd number of categories is preferable – Compared with Nike, Adidas produces sports wear that is: Much neither trendier much More nor unfashionable more Trendier
  34. 34. Attitude Rating Scale: Single-item Scales cont.• Rank-order – respondent compares one item with another (or many others) and ranks them• Place a 1 beside your most preferred soft drink; 2… Diet Pepsi Pepsi AC Cola Coke• Ordinal• Used to measure preferences for brands and attributes
  35. 35. Advantages and Disadvantages of Rank-order ScalesAdvantages• Respondents discriminate brands/objects• Takes less time and eliminates intransive responses• Instructions are easy to understandDisadvantages• Produces ordinal data thus limits the statistics that can be performed
  36. 36. Attitude Rating Scale: Single-item Scales cont.• Q-sort – Respondents sort comparative characteristics into groups – Between 60-90 objects can be ranked – Pre-specified number in each class – Each object is then assigned a rank order – Advantage: discriminates among a relatively large number of objects quickly
  37. 37. Sort 75 Magazines according to: 30 27 25 20 15 15 15 10 9 9 5 0 Prefer Like Neutral Dislike Prefer Most Least
  38. 38. Attitude Rating Scale: Single-item Scales cont.• Constant-sum scaling – A respondent is allocated a constant sum of units such as points among alternatives presented – Average is taken from all respondents – Ordinal in nature
  39. 39. Example: Constant Sum ScalingPlease divide 100 points among the followingcharacteristics of buying a car indicating the relativeimportance of each characteristic to you  Characteristics Number of pointsStyle 50Ride 10Economical 35Warranty 5Friendly Dealer 0 100
  40. 40. Advantages and Disadvantages of Constant Sum ScalingAdvantages• Finer discrimination among alternativesDisadvantages• Respondents may allocate more or less points available• Cognitive effort required
  41. 41. Attitude Rating Scale: Single-item Scales cont.• Pictorial scales – Various categories of the scale are depicted pictorially – How satisfied were you with the helpfulness of staff during your stay? 1 2 3 4 5 6 7 8 9 10 
  42. 42. Semantic differential 42
  43. 43. Attitude rating scalesOther scales include:• Numerical scales• Stapel scale• Constant–sum scale• Graphic rating scales• Thurstone interval scale. 43
  44. 44. Graphic rating scales 44
  45. 45. Graphic rating scales 45
  46. 46. Measuring behavioural intention• The behavioural component of an attitude, typically representing a buying intention. – Category scales – Behavioural differential. 46
  47. 47. Selecting a measurement scale• No single best answer.• The choice of scale will depend on the nature of the attitudinal object to be measured.• Will also depend on the manager’s problem definition and backward and forward linkages to choices already made. – Example: to suit survey method chosen. 47
  48. 48. Selecting a measurement scale• Some useful questions include: – Ranking, sorting, rating, or choice technique? – Monadic or comparative scale? – What type of category labels, if any? – How many scale categories or response positions? – Balanced or unbalanced rating scale? – A scale that forces a choice among predetermined options? – Single measure or index measure? 48
  49. 49. Learning Objectives• Describe the concepts of measurement and scaling• Identify different measurement scales• Explain the criteria for judging good measurement• Describe the different types of scales used for measuring attitudes• Choose an appropriate scale for a specific survey• Discuss some issues that may arise when developing scales to be used in cross-national research
  50. 50. Explain how you develop response scales Michael Sparks, Director Intuitive Solutions
  51. 51. Decisions in Single-item Scales• Number of scale categories• Types of poles used in scale• Strength of the anchors• Labelling of the categories• Balance of the scale
  52. 52. Number of Scale Categories 7-point scale5-point scale The website isThe website is innovativeinnovative  Strongly disagree  Disagree Strongly disagree  Disagree somewhat Disagree  Neither agree nor disagree Neither agree nor  Agree somewhat disagree  Agree Agree  Strongly agree Strongly Agree
  53. 53. Balanced vs. Unbalanced ScalesBalanced Unbalanced scalesHow important is price, as How important is price, asfar as you are concerned? far as you are concerned?•Very important •Extremely important•Of some importance •Very important•Of little importance •Of some importance•Of absolutely no •Of little importanceimportance
  54. 54. Forced vs. Non-forced ScalesForced scales Non-forced scalesIn general how In general howinterested are you in interested are you intrying a new brand of trying a new brand oftoothpaste? toothpaste? Very interested  Very interested Somewhat interested  Somewhat interested Not too interested  Unsure Not at all interested  Not too interested  Not at all interested
  55. 55. Multiple-item Scales• A scale where several items are used to measure a construct – Likert scale • requires respondent to indicate the degree of agreement or disagreement with a variety of statements related to the attitude object
  56. 56. Example: Likert Scale agree nor Disagree disagree disagree Strongly Strongly Neither Agree Agree The website displays is visually pleasing design 1 2 3 4 5 Learning to operate the website is easy for me 1 2 3 4 5 The website is innovative 1 2 3 4 5 The website loads quickly 1 2 3 4 5 I trust the website to keep my personal information 1 2 3 4 5 safe Shopping at this website is usually a satisfying 1 2 3 4 5 experience I will continue to purchase from this Website. 1 2 3 4 5A modified Likert scale can include 6, 7 or 10 items
  57. 57. Multiple-item Scales cont.• Thurstone scales – Generate large number of statements – Then classified by judges according to degree of favourableness or unfavourableness – Time consuming and expensive• Semantic-differential scale – Five or seven point rating scale with end points associated with bipolar labels that have semantic meaning – Used in comparing brand, product and company images
  58. 58. Now thinking about Tiger Woods as the spokesperson for Nike golf apparel, we would like to know your opinionsabout the expertise, trustworthiness, and attractiveness that you believe he brings to the advertisement. Eachdimension has five factors that may or may not represent your opinion. For each listed factor, please place a crosson the line that best expresses your opinion about that factor.Expertise: Knowledgeable Unknowledgeable Expert Not an Expert Skilled Unskilled Qualified Unqualified Experienced UnexperiencedTrustworthiness: Reliable Unreliable Sincere Insincere Trustworthy Untrustworthy Dependable Undependable Honest DishonestAttractiveness Sexy Not Sexy Beautiful Ugly Attractive Unattractive Classy Not Classy Elegant Plain
  59. 59. Multiple-item Scales cont. • Stapel scales – Uni-polar rating scale with 10 categories without a neutral point – No need to pre-test adjectivesThe store provides a fastcheckout service -5 -4 -3 -2 -1 +1 +2 +3 +4 +5The staff at the storeare friendly -5 -4 -3 -2 -1 +1 +2 +3 +4 +5
  60. 60. Continuous Rating Scales• Respondents rate the objects by placing a mark at the appropriate position on a line that runs from one extreme of the criterion variable to the other• Interval data• Easy to construct but scoring is cumbersome and unreliable
  61. 61. Example: Continuous Rating ScalesTo what extent do you involve your children in family decisionmaking? (Place an X on the line)     Not at all Extremely involvedTo what extent do you involve your children in family decisionmaking? Not at all Extremely involved1 2 3 4 5 6 7 8 9 10
  62. 62. Example: Rapid Analysis and Testing Environment• RATE is a continuous measurement of “gut reaction”. Roy Morgan’s The Worm can measure response to concept testing, advertising, even election debates.• Between 50 to 100 respondents are provided with a Worming dial and asked to record their reaction to the material being tested.• The information is fed into a computer which tabulates second-by-second response profiles. The responses are also stored in a data file for further analysis.• Respondent demographics are obtained via a questionnaire and used to cross-tab the key information.Source: www.roymorgan.com
  63. 63. Developing Multiple-item Scales
  64. 64. Choosing a Scale• Complicated by: – Many different techniques each with own strengths and weaknesses – Virtually any technique can be adapted for a given situation• Influenced by: – Information required – Budget constraints – Compatibility of scale
  65. 65. Scales in Cross-national Research• Responses can be affected by: – Low literacy and educational levels – Cultural differences – Points on a scale vary between countries – Semantic differential closest to pan cultural scale